Is another recession coming?

[Glenn]

Yes we are heading down again & maybe worse than last. Lots of companies are making good profits but the stock holders are not getting bigger dividends, not hiring just sitting on their cash. A relative of mine just got their first raise in 3 years, yep big raise of $100 annually. This is a public traded company that has exceeded estimated earnings several times. So their staff is stuck, prices go up but not their income. Its either cut back or incur debt. Neither is good for the economy. Im seeing more people getting back into the bunker mentality of lets not spend anything you dont have to. If enough do it we will really be going down hill.

 

[Evi]

Yes we are heading down again & maybe worse than last. Lots of companies are making good profits but the stock holders are not getting bigger dividends, not hiring just sitting on their cash. A relative of mine just got their first raise in 3 years, yep big raise of $100 annually. This is a public traded company that has exceeded estimated earnings several times. So their staff is stuck, prices go up but not their income. Its either cut back or incur debt. Neither is good for the economy. Im seeing more people getting back into the bunker mentality of lets not spend anything you dont have to. If enough do it we will really be going down hill.

Wow great way to increase consumer confidence and encourage some spending. Here it is don't spend what you don't have to. But when you do need to buy, buy local and buy us made that way your feeding mom pop shops and your feeding our economy.

 

[Muushka]

Well we did receive help. My mother (and her 2 children) received welfare and food-stamps and section 8 while she went to school to be able to make a living. We lived with my grandmother who also received SSI. We barely made it, but were never actually hungry. Because of this temporary help, my mother could afford to support us after two years and the welfare payments stopped. Soon after, she remarried and everything else stopped, but we were solidly into the middle class by then. Two years of welfare and then a lifetime of working and paying taxes, raising two college educated children(with advanced degrees): that's what welfare allows rather than creating a permanent under-class. Sure, there's abuse of the system (I've seen it myself) but I can't see dismantling the whole thing because of a few cheaters. The system worked for us the way it was supposed to. I wouldn't want to deny other children the chance I had.

ETA: I'm not disagreeing with you, BTW. I think things probably need to be revamped. I just wanted to tell you my experience in the system.

If every welfare story began and ended like yours, I would say it is a wonderful program, money well spent.

What a wonderful mom you had, doing what she did and pulling herself up and out of the welfare system.

I know that there are a lot of families like yours, and I don't resent one dime of our taxes going to them.

 

[ilovemk76]

If every welfare story began and ended like yours, I would say it is a wonderful program, money well spent.

What a wonderful mom you had, doing what she did and pulling herself up and out of the welfare system.

I know that there are a lot of families like yours, and I don't resent one dime of our taxes going to them.

That is the way welfare must work. The problem is we have generational welfare recipients now. We need to implement places for the recipients to go to show their kids they don't just get to stay home and do as they please and a check comes in. The kids must be in school or there should be a consequence for day after day after day absences from school. This just a start.

I think that we also have to change unemployment such that a person needs to take any job after a certain amount of time on unemployment.

 

[fakereadhed]

The real problem with people not getting off welfare and other programs has little to do with structure and more to do with psychology-external vs internal locus of control. If people feel like they aren't in control of their lives they aren't as likely to take the risks they need to get out of the welfare cycle. I have seen this over and over and I think the majority of families that repeat the cycle feel more helpless to fix it than lazy and wanting to milk the system. Until that problem is addressed I don't see anything changing no matter how they structure it.

 

[OceanAnnie]

The real problem with people not getting off welfare and other programs has little to do with structure and more to do with psychology-external vs internal locus of control. If people feel like they aren't in control of their lives they aren't as likely to take the risks they need to get out of the welfare cycle. I have seen this over and over and I think the majority of families that repeat the cycle feel more helpless to fix it than lazy and wanting to milk the system. Until that problem is addressed I don't see anything changing no matter how they structure it.

You are right. It's not just families. It's whole communities that repeat the cycle. People that do try to make it out are looked down upon because they are rejecting everyone's way of life in the community. They have no support system. It's sad.

 

[ShanPooh]

My company cannot find American born Phd scientist in 2011.

Not sure why.

My friend has a PHD in Physics from Norte Dame and is currently looking for work so I KNOW they are out there.

 

[Colleen27]

I also know that people used to keep things like furniture and clothes longer, but I think we all can agree that's because they were built to last. My DH and I bought couches about a year after we were married (we had gotten really tired of sitting on the floor or our one folding chair- I know that probably makes us greedy), we bought what we could afford, and unfortunately they aren't doing too well. They are getting saggy and worn, and we've really done our best to take care of them. I don't want to get rid of them, and I'm sure we'll still stick it out for years, but it isn't always that people want to get rid of their stuff, but that their stuff fails them when it comes to longevity.

And that one is a bit of a chicken and egg question, because "planned obsolescence" wasn't just talk and it wasn't just auto companies that realized building a product to last meant less sales than building one that needs to be replaced more often. Sure, some people are replacing perfectly good furniture because they want to change styles but a lot of people are simply replacing things that aren't made to last more than a handful of years.

 

[Lisa loves Pooh]

And that one is a bit of a chicken and egg question, because "planned obsolescence" wasn't just talk and it wasn't just auto companies that realized building a product to last meant less sales than building one that needs to be replaced more often. Sure, some people are replacing perfectly good furniture because they want to change styles but a lot of people are simply replacing things that aren't made to last more than a handful of years.

Yep!

Things are constructed now to be cheap. Now, cheap is in the eye of the beholder. But I mean by how they are constructed and not necessarily the purchase price.

As for electronics. Oy! That field "advances" faster than lightening and while it would be lovely to help save the landfills from clutter, in some cases--it ends up being cheaper to buy new than repair old.

Decades ago this was not the case. You repaired because you could not afford new and didn't chuck old just because it needed to be repaired. Now--you chuck it because the part costs more than replacing the entire thing. (If you just replace what you have and not "upgrade" to the present "latest and greatest").

Heck-we were on our third electrical can opener in a very short period of time since we got married. I think maybe in 2 years, tops? We have used a manual can opener ever since. They are cheaper and last for much longer.

 

[Colleen27]

Decades ago this was not the case. You repaired because you could not afford new and didn't chuck old just because it needed to be repaired. Now--you chuck it because the part costs more than replacing the entire thing. (If you just replace what you have and not "upgrade" to the present "latest and greatest").

Appliances are that way too now. We bought all new appliances in Jan '05, nothing high end but middle of the road models without a lot of bells and whistles. We've already had to repair the washer and dryer, the stove has been replaced because the part that went cost about $50 less than the new (nicer) stove I wanted, and the fridge seems to be on its' last leg in this heatwave. Fortunately we're handy; I fixed the dryer, DH fixed the washer, and we could have done the stove if the part had been more affordable. Hiring someone to do those repairs would have come close to the price of replacements on those as well.

 

[nunzia]

The real problem with people not getting off welfare and other programs has little to do with structure and more to do with psychology-external vs internal locus of control. If people feel like they aren't in control of their lives they aren't as likely to take the risks they need to get out of the welfare cycle. I have seen this over and over and I think the majority of families that repeat the cycle feel more helpless to fix it than lazy and wanting to milk the system. Until that problem is addressed I don't see anything changing no matter how they structure it.

I agree..and the gov't is the one who set it up..people lose confidence and feel out of control of their lives when they aren't expected to make their own way. If we can slowly wean them off this cycle and educate and motivate them, then it's win win for all. People need to realize help is temporary and then be pushed to make the change..if there is no option but the help stopping, and help offered to go forward, then most will hopefully rise to taking care of themselves.

 

[Muushka]

Tim Geithner is on with Chris Wallace today. What a frustrating interview.

 

[punkin]

Appliances are that way too now. We bought all new appliances in Jan '05, nothing high end but middle of the road models without a lot of bells and whistles. We've already had to repair the washer and dryer, the stove has been replaced because the part that went cost about $50 less than the new (nicer) stove I wanted, and the fridge seems to be on its' last leg in this heatwave. Fortunately we're handy; I fixed the dryer, DH fixed the washer, and we could have done the stove if the part had been more affordable. Hiring someone to do those repairs would have come close to the price of replacements on those as well.

It's planned obsolescence and I hate it. My mother's mid-range Kenmore washing machine lasted for over 25 years and the only reason she bought a new one was because the avocado color was getting on her nerves. My washing machine broke after less than 5 years. I got it repaired because I bought a 5 year warranty (I already had a washer break on me) and we were 2 months before it expired. The part would have cost $500 and G-d knows how much for labor. It would have been cheaper to replace. What a waste!